FSA Use-it or Lose-it Rule Hits the Highway for Two Years
During the pandemic, many employees couldn’t use their Flexible Spending Account (FSA) dollars due to the closure of day care facilities and summer camps and the postponement of health care services. The Taxpayer Certainty and Disaster Tax Relief Act of 2020 (the Act) allows XPO to automatically carry over any unused FSA account balances for the 2020 and 2021 plan years into the next plan year. You can use the carryover amounts on claims incurred in the new plan year. Click here for additional details.
What You Need to Do
If you had an unused Health Care FSA (HCFSA) or Dependent Care FSA (DCFSA) account balance at the end of 2020, what you need to do — or not do — depends on your situation.
|YOUR SITUATION||WHAT YOU NEED TO DO|
|If you enrolled in the HCFSA or DCFSA for 2021 …||You don’t need to do anything. WageWorks* will carry over your unused account balance to your PayFlex HCFSA or DCFSA in April 2021.|
|If you did not enroll in either the HCFSA or DCFSA for 2021 …||You don’t need to do anything. XPO will automatically re-enroll you effective January 1, 2021 so you won’t have a gap in coverage. WageWorks* will carry over your unused account balance to a PayFlex HCFSA or DCFSA in April 2021.|
|If you enrolled in the HSA for 2021 …||Your unused HCFSA account balance will not carry over to your HSA and will be forfeited.|
|If you leave XPO …||You don’t need to do anything. You can access your unused account balance (up to the amount you actually contributed) through the end of the year in which you leave, without a need to enroll in COBRA.|
* Just a reminder that XPO changed FSA vendors from WageWorks to PayFlex effective January 1, 2021.
New Benefit Enrollment Website
XPO introduced a new benefit enrollment website during Open Enrollment for 2021. The new site offers:
- Easy access to the majority of your benefit-related tasks
- Mobile-friendly functionality for iOS and Android smartphones and tablets
- Easy-to-use decision support tools
- Web chat functionality
- Best-in-class security
New Benefit Administrator
We transitioned the administration of our benefits to bswift effective January 1, 2021.
New Spending Account Partner
As part of the transition to bswift, PayFlex administers all three of our spending accounts — Health Care FSA, Dependent Day Care FSA and Commuter Spending Account — effective January 1, 2021.
If you contributed to the Health Care FSA or Dependent Day Care FSA in 2020, continue submitting your claims for expenses incurred through December 31, 2020 to WageWorks before March 31, 2021.
401(k) Administration Moved to Fidelity
In the summer of 2020, XPO moved the administration of its 401(k) Plans to Fidelity. You have access to a wide variety of features and resources, including financial wellness resources, retirement planning support, a world-class call center and investor center branches throughout the country where you can meet with an advisor. The website shows all of your Fidelity accounts in one place, provides access to interactive tools and resources and can help you improve and track your personal financial wellness. Additional information is available at www.myfidelitysite.com/XPO.
Managing Your Cost of Coverage
Health care costs are expected to go up by more than 6% across the country in 2021. We’ve been able to hold medical rates flat for the majority of employees and XPO will continue to pay 80% or more of the cost of coverage. Visit myXPO Portal for detailed cost information during Open Enrollment or review the personalized enrollment worksheet mailed to your home.
Just a reminder that we all share a responsibility to be smart health care consumers. Please review the Health Care Consumer Tips below for ways to save money.
HSA Contribution Minimum
If you like the convenience of contributing to your Health Savings Account (HSA) through payroll deductions, you’ll need to contribute a minimum of $500 for the year.
You Can Save More on Taxes
HSA contribution limits are set by the IRS each year. The amount you may contribute is triple-tax protected and depends on which HSA option you elect, whether XPO contributes, the coverage level you choose and your age.
|Under Age 55||Age 55 or Older|
|HSA Plus||Employee Only||Employee + 1 or More||Employee Only||Employee + 1 or More|
|2021 IRS Limit||$3,600||$7,200||$4,600||$8,200|
|Basic HSA||Employee Only||Employee + 1 or More||Employee Only||Employee + 1 or More|
|2021 IRS Limit||$3,600||$7,200||$4,600||$8,200|
If you or your covered spouse uses tobacco, you will pay an extra $100 per month for medical coverage. If you are or your covered spouse is a former tobacco user (meaning you completed a tobacco cessation program in the past), you can avoid the $100 per month surcharge by verifying your status when you enroll.
Learn more here.
Did Your Spouse Gain Coverage?
If your spouse enrolls in medical coverage through his or her employer related to a Qualifying Event, you can have the Spousal Surcharge removed, but it’s a good idea to call the Benefit Service Center within 45 days so the surcharge removal will be retroactive to the Qualifying Event date. Otherwise, the surcharge will be removed as of the date you call.
Whether you’re adding a dependent for the first time or responding to a random dependent verification audit, you will have 60 days to provide documentation. (Previously the timeframe was undefined.) If you do not provide documentation within 60 days, your dependent(s) will be removed from coverage. It’s also your responsibility to remove dependents from coverage once they become ineligible.
Health Care Consumer Tips
- The Basic HSA or HSA Plus plan may be the best plan for you. With an HSA plan, you’ll pay less in payroll deductions. If you elect HSA Plus, you’ll also receive a contribution from XPO to help pay for eligible health care expenses. Learn more about HSAs.
- You’ll save with an HSA or FSA. You’ll save valuable tax dollars and lower your taxable income when you open an HSA or Health Care FSA. The money you contribute or withdraw in these accounts is tax-free when you use it for eligible health care expenses.
- Only use the emergency room for true emergencies. Trips to the ER can be expensive and cost you a lot out of your own pocket, so be sure you only visit an ER when absolutely necessary. Use urgent care facilities, schedule a visit with your doctor or use telemedicine when you have minor injuries or illnesses. Take advantage of LiveHealth Online for a nominal fee or 24/7 NurseLine for free. Nurses are on call to answer any health questions you might have and to provide guidance on emergency care, urgent care and more.
- Consider generic prescriptions instead of brand-name prescriptions. Generic prescriptions are usually considerably less expensive and are approved by the FDA. Ask your physician or pharmacist if your prescription has a generic alternative and save money.